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Battery recycling technology solutions provider Ace Green Recycling announced Wednesday it has signed a supply agreement with OM Commodities, which specializes in trading ferrous and non-ferrous scrap, primary metals, and residues.

As part of the agreement, OM Commodities will supply Ace Green with at least 30,000 metric tons of lead scrap annually, which the company expects to recycle at its planned flagship facility in Texas, with production expected to begin in 2026.

The level of feedstock is sufficient to cover 100% of Ace Green’s Phase 1 recycling capacity at its future Texas facility, it said.

The agreement is for a term of at least 15 years and provides Ace Green with the option to obtain more supply from OM Commodities as it scales up its recycling operations.

Ace Green said it is also in active discussions with OM Commodities for future lithium battery recycling collaborations.

“Ace is a pioneer when it comes to providing an environmentally friendly and economically superior solution to recycle valuable material from lead scrap,” OM Commodities president Yiannis Dumas . “We look forward to supporting Ace with lead feedstock as they scale up their operations in Texas and helping create a more circular and sustainable battery materials supply chain in the US.”

With more than 1.5 million metric tons of lead battery scrap available for recycling in the US alone, there is a critical gap in smelter capacity to keep valuable lead material within the domestic supply chain.

Ace said its GREENLEAD recycling technology is a fully electric process that produces zero Scope 1 emissions and is capable of recovering up to 99% of battery-grade lead with more than 99.98% purity.

The company said its process is designed to replace legacy smelting operations that are detrimental to the environment and human health due to potential lead poisoning. It also said the innovation helps to facilitate a more streamlined permitting process.

“We believe that Ace’s future Texas facility is poised to play a key role in addressing many of the current challenges in the lead industry in the US, while helping the country meet the growing domestic demand for valuable battery materials,” Ace Green CEO Nishchay Chadha said.

“This agreement with OM Commodities will provide us with enough supply to support our Texas facility during all of its current planned phases, enabling us to achieve optimal efficiencies as we deploy our solutions in the US market.”